If CryptoQuant analyst Axel Adel is to be believed, retail investors currently have great confidence in BTC continued growth. He describes a scenario in which the number of wallets with less than 1 Bitcoin could grow by 9% in the short term. This would mean that retail investors continue to invest even though the Bitcoin price has already exceeded the 100,000 USD mark.
The average number of addresses holding less than 1 BTC currently stands at 323K (with BTC priced at $101K).
This growth began when BTC was at $61K, at which point there were 265K such addresses. Since then, the number of addresses has increased by 21.9%.
Despite being labeled… pic.twitter.com/gK0AwOPWd1
— Axel 💎🙌 Adler Jr (@AxelAdlerJr) December 14, 2024
Positive development among small investors
Wallets with less than 1 BTC are known in technical jargon as “shrimps.” According to Axel Adel, these are an important indicator for understanding the sentiment among private investors.
Axel Adel explains that the average number of Shrimp wallets is currently 323,000. He expects this number to increase by 8.67% in the short term.
“Given the current trend, I expect the number of addresses to continue to grow and reach 351,000 in the short term,” the analyst said.
Adler explains that this growth began when BTC was trading at 61,000 USD. At that time, there were 265,000 shrimp wallets.
Since this price level, we have seen a 21.9% increase in the number of these wallets. While shrimps are currently accumulating Bitcoin, long-term holders are selling their holdings.
Long-term holders are dumping their Bitcoin
In the 30 days following November 8, long-term holders sold 827,783 BTC. At the current price of 105,000 USD, that equates to a value of over 85 billion USD.
However, it is important to note that investors are only considered long-term holders if they have held their BTC for at least 155 days.
In the on-chain world, after about five months, one already speaks of a long-term holder. This definition came about when the on-chain analysis company Glassnode determined based on data that the probability of a sale after these 155 days is significantly lower.
What’s interesting is that despite all this selling, Bitcoin continues to trade at 105,000 USD. This shows that there is a lot of demand at this level, which is extremely positive for the health of the bull market.
This means that at these price levels, a lot of capital is flowing into the market and BTC is starting to form a base around the current price levels.
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